Income as an alternative to seasoning cash in bank

[Laza 45]

4 hours ago, totally thaied up said:

You need to keep in mind exchange rates. They have not been flash for Australians.

 

My Australian pension does not give me the 40,000 required a month at 23.50. Still, give me some interest thrown in and my dividends; it covers it easily, but I suppose I have always been a cash man.

 

However, with many companies stripping dividends down and a 2.8% cash rate from places like ING or having your cash in bonds, it is not certain. I want my stay in Thailand to be permanent, so hence I use cash. My investments for a few years can go South until a recovery, and I got no pressure on me to make my trading perform now.

 

I don't want to stress about trading anymore. 

 

Say, if in 2012 I was getting 40,000 a month at a rate above 30 to the AUD (you need around $AUD 670 per fortnight), my pension now would be many %'s points short in 2018 (you need around AUD$ 851 now per for night). Just about all my friends do not make more than the $1390 dollars need a fortnight for retirement, and I don't know how they do it.

 

I think the income and cash method is the only way they can do it.

 

I am well ahead of interest rates by previously bringing in cash. I was pretty lucky I guess in bringing money in. Still, for those with loads of cash back home and have a good dividend or business, etc., etc., income is a great way to do it.

If you are not getting $850  fortnight Aussie pension you must have a lot of assets or cash in the bank that would make up the difference.. 

[Kalasin Jo]

Thanks for all that advice guys. And yes I am talking about a visa based on marriage extension, ( so 40k a month) not a retirement visa, though that's how I started before getting married. Well I'm going to give the Embassy letter a go using gross income figures. Just wanted to be clear before I abandon seasoned funds, as it will then be too late to do anything about it!

[Kalasin Jo]

One more thing. How close to the renewal application date should the date of the Embassy letter be?

[tideout]

I'm new to thinking about Thailand as a retirement option. I'm wondering if it's possible to have $1250/month in income and say 40-50K in the bank in savings. Is there any combination you can use for the retirement visa?

[a977]

20 hours ago, Lacessit said:

There is an opportunity cost. The banks are paying only 1.5% interest here. So that's 12,000 baht a year in interest.

My income Stat dec from the Australian Consulate costs about 1900 baht. On the other hand, the 800,000 baht back in Australia, conservatively invested, is earning 5% pa. 40,000 baht, with zero income tax. Interest in the Thai banks is taxed.

I think you will find the Aust. Tax Office knows all about your 40,000baht interest and will add it to your income assessment come June 30th as they do with my interest and share dividends

[ubonjoe]

8 hours ago, Kalasin Jo said:

One more thing. How close to the renewal application date should the date of the Embassy letter be?

Immigration will accept one that is up to 6 months old on the date you apply.

[ubonjoe]

7 hours ago, tideout said:

I'm new to thinking about Thailand as a retirement option. I'm wondering if it's possible to have $1250/month in income and say 40-50K in the bank in savings. Is there any combination you can use for the retirement visa?

Yes you can use the combination option to reach a total of 800k baht.. At 32 to the dollar you monthly income is 40k baht which is 480k baht annual income. You need at least 320k baht in the bank on the date you apply for the extension. Many offices will want it to be in the bank for 3 months on the date you apply if it is not your first extension which requires 60 days.

[Tanoshi]

21 hours ago, wgdanson said:

A PAIN? Email gross income evidence to British Consulate, give them 52 quid. DONE. 

Whilst that may be fact for British expats this forum has mixed nationalities and many have to visit their Embassies to get the proof of Income Letter. Add travel costs to the cost of the letter and some prefer the cash in the bank method for that and other reasons.

[poanoi]

22 minutes ago, Tanoshi said:

Whilst that may be fact for British expats this forum has mixed nationalities and many have to visit their Embassies to get the proof of Income Letter. Add travel costs to the cost of the letter and some prefer the cash in the bank method for that and other reasons.

how it works for me is that i ask for proof from my insurance

company that pays my pension, i then take that to my embassy

or consulate and ask for proof with a stamp,

that is free last i did it iirc

[xylophone]

13 hours ago, Just Weird said:

Really?  You mean the one that Immigration keep for their records?  You don't get the original of that Embassy letter back so how did you manage to use it the next year, exactly?

Quote: "You don't get the original of that Embassy letter back". But it is sent to me in the first place!

 

See below...…..exactly.

 

12 hours ago, wgdanson said:

Is it a 3D laser print because it needs the embossed seal on it. 

I have the originals sent to me and I still have one from the _ _ embassy and one from the_ _ consulate that I can use. Neither of which have an embossed seal on them.

 

I also attach copies of letters from the relevant Govt agencies stating my pension amounts.

 

And for the record, I work out the exchange rates on the day and write the baht amounts on the paperwork and the IO has always asked if they are correct and reply that they are...…...no close scrutinising of any of the docs apart from the bank book copies. 

 

[Laza 45]

2 hours ago, a977 said:

in Australia, conservatively invested, is earning 5% pa. 40,000 baht, with zero income tax. Interest in the Thai banks is taxed.

..please tell me where you can get 5% interest in Australia.. 

[tideout]

2 hours ago, ubonjoe said:

Yes you can use the combination option to reach a total of 800k baht.. At 32 to the dollar you monthly income is 40k baht which is 480k baht annual income. You need at least 320k baht in the bank on the date you apply for the extension. Many offices will want it to be in the bank for 3 months on the date you apply if it is not your first extension which requires 60 days.

Thanks ubonjoe, appreciate the breakdown. Looks like I could do ok with a standard, monthly social security payment and modest savings......I'm a regular working guy, not rich but I don't spend much either and have no debt.

[wgdanson]

2 hours ago, xylophone said:

Neither of which have an embossed seal on them.

 

Immigration WILL NOT accept copies, they must be the original with the embossed seal

[xylophone]

5 minutes ago, wgdanson said:

Immigration WILL NOT accept copies, they must be the original with the embossed seal

"WILL NOT"...………….and you are so sure!!!

 

But I have a letter from a Consulate (also used by a friend) which is not embossed, but does have a stamp, which is accepted by Immigration..………..and is just about impossible to tell from a laser produced copy.

 

Anyway, I don't why I am wasting my time arguing because I have done it in the past, and you don't know which embassy or consulate I'm talking about anyway!!

 

 

 

 

[wgdanson]

58 minutes ago, xylophone said:

"WILL NOT"...………….and you are so sure!!!

 

But I have a letter from a Consulate (also used by a friend) which is not embossed, but does have a stamp, which is accepted by Immigration..………..and is just about impossible to tell from a laser produced copy.

 

Anyway, I don't why I am wasting my time arguing because I have done it in the past, and you don't know which embassy or consulate I'm talking about anyway!!

 

 

 

 

Sorry, talking about British Emabassy.

[Classic Ray]

The only disadvantage to the retirement option is not being able to work/get work permit. So I persist with a marriage visa with income letter until my wife tells me I can stop work!

[Muzarella]

On 17/5/2561 at 10:39 AM, JRUSA said:

Mr. Joe..I was thinking or moving my direct deposit of my pension directly to Bangkok bank. If I use the NY office will it still have to be transformed to my branch in Pattaya or just go directly in my account.

Go directly to your Bangkok Bank here. Take about 5 to 6 days.

[xylophone]

4 hours ago, wgdanson said:

Sorry, talking about British Emabassy.

Apology accepted, and I wasn't talking about the British Embassy.

[onera1961]

On 5/16/2018 at 10:39 PM, JRUSA said:

Mr. Joe..I was thinking or moving my direct deposit of my pension directly to Bangkok bank. If I use the NY office will it still have to be transformed to my branch in Pattaya or just go directly in my account.

It will directly go to your direct deposit account. Direct deposit account has certain restrictions, e.g. only teller withdrawal. However, you can open a second account that is not direct deposit account. And set up recurring online transfer from direct deposit account to normal savings account for ATM withdrawals. 

[ubonjoe]

9 hours ago, onera1961 said:

It will directly go to your direct deposit account. Direct deposit account has certain restrictions, e.g. only teller withdrawal. However, you can open a second account that is not direct deposit account. And set up recurring online transfer from direct deposit account to normal savings account for ATM withdrawals. 

You can only do transfers to your normal account from the direct deposit account in person. No online transfers are allowed.

I have a direct deposit account so can state the above from personal experience.

[Just Weird]

On ‎5‎/‎18‎/‎2018 at 11:52 AM, xylophone said:

"WILL NOT"...………….and you are so sure!!!

 

But I have a letter from a Consulate (also used by a friend) which is not embossed, but does have a stamp, which is accepted by Immigration..………..and is just about impossible to tell from a laser produced copy.

 

Anyway, I don't why I am wasting my time arguing because I have done it in the past, and you don't know which embassy or consulate I'm talking about anyway!!

So which one are you using, then?  And how come you don't seem to know whether you an Embassy or a Consulate is providing this documentation?

[Russell17au]

On 17/05/2018 at 5:02 PM, totally thaied up said:

You need to keep in mind exchange rates. They have not been flash for Australians.

 

My Australian pension does not give me the 40,000 required a month at 23.50. Still, give me some interest thrown in and my dividends; it covers it easily, but I suppose I have always been a cash man.

 

However, with many companies stripping dividends down and a 2.8% cash rate from places like ING or having your cash in bonds, it is not certain. I want my stay in Thailand to be permanent, so hence I use cash. My investments for a few years can go South until a recovery, and I got no pressure on me to make my trading perform now.

 

I don't want to stress about trading anymore. 

 

Say, if in 2012 I was getting 40,000 a month at a rate above 30 to the AUD (you need around $AUD 670 per fortnight), my pension now would be many %'s points short in 2018 (you need around AUD$ 851 now per for night). Just about all my friends do not make more than the $1390 dollars need a fortnight for retirement, and I don't know how they do it.

 

I think the income and cash method is the only way they can do it.

 

I am well ahead of interest rates by previously bringing in cash. I was pretty lucky I guess in bringing money in. Still, for those with loads of cash back home and have a good dividend or business, etc., etc., income is a great way to do it.

I am on the Australian old age pension and with the current exchange rate it gives me 43,258 baht per month so you either are on a reduced pension because you have too many assets or you are making a bad calculation somewhere. Try multiplying your fortnightly pension by 26 then divide that total by 12 and do the conversion on that figure. A lot of people forget about the 26 weeks and 12 months part

[xylophone]

2 hours ago, Just Weird said:

So which one are you using, then?  And how come you don't seem to know whether you an Embassy or a Consulate is providing this documentation?

Can't let it go can you...............

 

Yes I do know whether or not I have an embassy or consulate providing the documentation, and in fact I have both, mainly because I have two different income sources from two different countries and two different passports, and I get choose whichever is the most convenient source for me.

 

Anyway, as I said before I do what I do and it's no business of yours, so you can question away all you like if you have nothing better to do, but I have given the explanation twice to you and your fellow antagonist wgdanson, so that's it.

 

But just to confuse you even further, I will let you into a secret, inasmuch as I can get the information I need from three different sources actually............. there you go, something for you to ponder over, and which will probably confound you even more.

 

However no more from me as it's not worth my time and effort..........I can explain it to you, but I can't help you understand it!

[totally thaied up]

1 hour ago, Russell17au said:

Australian old age pension and with the current exchange rate it gives me 43,258 baht per month so you either are on a reduced pension because you have too many assets or you are making a bad calculation somewhere.

 

It is reduced due to assets and marriage.

 

Below may be a little confusing.

 

If you are married and have registered it back in Australia, you will lose around $130-150 dollars/per fortnight. 

 

So say if the base rate is around $840, minus $140 in marriage cut, it will give you say $700 a fortnight. 

 

That is around 16, 450 per fortnight in today's baht. 

 

So if you get to say around $870 (close calculation to 43, 258) a fortnight, either you are not married or on a retirement visa.

 

Now, I get only get $640 a fortnight, and that is minus the 'marriage cut' of $140.

 

Now if that exchange rate drops too considerably more, say to 19-20 baht, it would get a lot harder. 

 

So hence, why I like cash.

 

 

 

[Lacessit]

On 5/18/2018 at 7:09 AM, a977 said:

I think you will find the Aust. Tax Office knows all about your 40,000baht interest and will add it to your income assessment come June 30th as they do with my interest and share dividends

Yes it does. However, thanks to franked dividends and the Senior Australians Tax Offset, I actually get a small refund with zero tax paid. Except through the GST, of course.

[Lacessit]

On 5/18/2018 at 9:53 AM, Laza 45 said:

..please tell me where you can get 5% interest in Australia.. 

I average 5.3% with Ratesetter, one of the peer-to-peer lenders. That's a mix of one month, one year and 3 year loans. Latrobe Financial pays 5.2% on residential mortgages with a LVR of 70%.

Not interest, but dividends from the big banks are a grossed-up yield after franking credits of 7% or better.

The jury is still out on Raiz ( formerly Acorns ). A quasi-ETF for small investors.

One can get  10% interest on peer-to-peer loans with Marketlend or True Pillars. However, these have a much higher risk level.

[xylophone]

1 hour ago, Lacessit said:

I average 5.3% with Ratesetter, one of the peer-to-peer lenders. That's a mix of one month, one year and 3 year loans. Latrobe Financial pays 5.2% on residential mortgages with a LVR of 70%.

Not interest, but dividends from the big banks are a grossed-up yield after franking credits of 7% or better.

The jury is still out on Raiz ( formerly Acorns ). A quasi-ETF for small investors.

One can get  10% interest on peer-to-peer loans with Marketlend or True Pillars. However, these have a much higher risk level.

Interesting (sorry about the pun!) and are these P2P lenders rated with regards to risk, and are investors covered if the loans go bad (aside from the "reserve fund/pot").

 

The reason I ask is because of this quote, "So how do you know if peer-to-peer lending is right for you?

Well, for starters you need to assess your risk profile. The potential for 8 percent or 10 percent annual returns is nice, but there is a very real case your money is just walking out the door. So never consider P2P lending if you can't afford to lose a big chunk of that principal".

 

https://money.usnews.com/investing/dividends/articles/2017-11-16/is-peer-to-peer-lending-safe-for-income-investors 

 

PS. I do appreciate that you have not selected the highest return, so therefore your risk should reflect this, however how many people consider their own risk profile before investing?

[Laza 45]

1 hour ago, Lacessit said:

I average 5.3% with Ratesetter, one of the peer-to-peer lenders. That's a mix of one month, one year and 3 year loans. Latrobe Financial pays 5.2% on residential mortgages with a LVR of 70%.

Not interest, but dividends from the big banks are a grossed-up yield after franking credits of 7% or better.

The jury is still out on Raiz ( formerly Acorns ). A quasi-ETF for small investors.

One can get  10% interest on peer-to-peer loans with Marketlend or True Pillars. However, these have a much higher risk level.

Thank you..

[Lacessit]

1 hour ago, xylophone said:

Interesting (sorry about the pun!) and are these P2P lenders rated with regards to risk, and are investors covered if the loans go bad (aside from the "reserve fund/pot").

 

The reason I ask is because of this quote, "So how do you know if peer-to-peer lending is right for you?

Well, for starters you need to assess your risk profile. The potential for 8 percent or 10 percent annual returns is nice, but there is a very real case your money is just walking out the door. So never consider P2P lending if you can't afford to lose a big chunk of that principal".

 

https://money.usnews.com/investing/dividends/articles/2017-11-16/is-peer-to-peer-lending-safe-for-income-investors 

 

PS. I do appreciate that you have not selected the highest return, so therefore your risk should reflect this, however how many people consider their own risk profile before investing?

P2P is still relatively new in Australia. I'll admit to getting a bit singed with Marketlend, and I have significantly reduced my exposure. Ratesetter has a good reputation.

Savers/investors in Australia are treated with contempt by the big banks and credit unions. If we stick with them, the capital is safe thanks to a taxpayer funded government guarantee; however, the return is miserable. It's a matter of assessing how much of your capital is put at risk to earn a reasonable income for a retiree.

[xylophone]

18 minutes ago, Lacessit said:

P2P is still relatively new in Australia. I'll admit to getting a bit singed with Marketlend, and I have significantly reduced my exposure. Ratesetter has a good reputation.

Savers/investors in Australia are treated with contempt by the big banks and credit unions. If we stick with them, the capital is safe thanks to a taxpayer funded government guarantee; however, the return is miserable. It's a matter of assessing how much of your capital is put at risk to earn a reasonable income for a retiree.

A good and honest reply, and I suppose my question reflected my "uncertainty" about such an investment.

 

The reason being that I was in NZ when the majority of the finance companies went belly up, and there was carnage with people's life savings being wiped out, mainly because they thought these multi-million/billion finance companies were safe, when in fact they weren't and there were no guarantees in place whatsoever, and of course they weren't overseen by any financial monitors.

 

Then of course we had the CDO debacle, and this again was as a result of lack of oversight and allowing the banks and finance companies to "police" themselves.

 

I sincerely hope your investments prove fruitful for you, with no hiccups along the way.